• Sat. Jul 13th, 2024

$1 Trillion Dollars in Interest Payments

Jul 17, 2023

Monthly Treasury Statement

You will have the opportunity to share an extraordinary tale with your children, recounting the moment when the United States suffered a complete collapse, unfolding right in front of our eyes. You’ll inform them that this cataclysmic event was largely ignored by the mainstream media, who instead focused on insignificant news about saving money and the world of golf. Meanwhile, Russia and China astutely observed the United States’ self-destruction, seizing the opportunity to solidify their positions as the leading global superpowers. You’ll be able to convey to your children that the most glaring signs of the country’s decline emerged while most Americans were celebrating the 4th of July holiday, blissfully unaware of the impending crisis. Little did they know that in Washington, D.C., President Biden issued a warning, announcing the active preparation of thousands of U.S. troops to be deployed to Europe. Despite the gravity of the situation, the government refrained from explicitly calling it a war, opting instead to send Americans to potentially sacrifice their lives in Ukraine.

However, that wasn’t even the most distressing news. While people were indulging in hot dogs and enjoying fireworks, the Congressional Budget Office discreetly released an earth-shattering report. The government deliberately chose to disclose this information on a Friday in July, when public attention was at its lowest. Yet, you were paying attention, and you discovered that the report contained alarming revelations, not prominently displayed on the first page. In fact, on page one, it was evident that the United States’ government spending had escalated by a staggering 15% compared to the previous year, while tax revenue had plummeted by 9%. You don’t need to be a math genius to understand that this is a troubling situation: spending increasing by 15% while income decreases by 9% clearly spells trouble. The report also unveiled a shocking fact, subtly highlighted on page eight: the United States had already amassed an unprecedented $652 billion in gross debt interest in 2023. In simpler terms, this means that the country had to pay $652 billion solely in interest payments on its debt. And if that wasn’t alarming enough, the report projected that the interest payments on the national debt would surpass an astronomical one trillion dollars this year. Consequently, the US government would be paying a mind-boggling one trillion dollars in interest alone just to maintain its current position of debt, which amounts to a staggering $32 trillion, with China and major international banks like JP Morgan Chase being the primary creditors.

As a result, the payment of interest on the national debt has now become the most expensive government program, surpassing expenditures on vital aspects such as Social Security, national defense, education, infrastructure, and even the military. This disconcerting situation implies that the nation is sacrificing its future in order to rectify past mistakes. If you are a parent, this should raise significant concerns, as you are raising your children in a country that is teetering on the brink of collapse.

Russia and China have been keenly observing the vulnerability of the United States, seizing the opportunity to capitalize on its declining power. They recognize the diminishing influence of the US on the global stage and are taking advantage of this situation. Russian President Putin has accomplished a remarkable feat by reducing reliance on the US dollar for oil and gas payments, while China is actively reducing its dependence on the US dollar in international trade. This deliberate shift undermines the dominant position of the US dollar as the world’s reserve currency, weakening America’s influence and posing a threat to national security.

Even the Federal Reserve is well aware of the precarious situation. In order to manage the daunting task of paying the trillion-dollar interest payments, the only viable option is to devalue the US currency. In essence, inflating the US dollar becomes the sole recourse, creating a predicament that the Federal Reserve itself has contributed to. One economist astutely suggests that this marks the true beginning of the end, indicating the severity of the impending crisis. The impending changes are bound to be profound and consequential.

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